Viper Energy Ut (VNOM)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	857,231	833,288	918,177	863,299	826,788	825,642	754,001	832,552	865,767	827,982	734,448	609,231	504,297	414,675	349,427	267,952	249,566	265,913	275,067	314,791
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	2,810,880	2,837,070	2,750,270	2,810,670	2,829,540	2,860,750	2,920,120	2,337,550	2,357,010	2,380,240	2,405,050	2,537,880	2,565,520	2,587,660
Fixed asset turnover		—	—	—	—	—	—	0.27	0.29	0.31	0.29	0.26	0.21	0.17	0.18	0.15	0.11	0.10	0.10	0.11	0.12

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $857,231K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that a company is effectively utilizing its assets to generate revenue.

Analyzing the fixed asset turnover ratio of Viper Energy Ut over the past few quarters, we can see a fluctuating trend. The ratio was 0.12 as of March 31, 2020, decreased to 0.10 by September 30, 2020, remained at 0.10 by December 31, 2020, and increased slightly to 0.11 by March 31, 2021. There was a significant improvement in the ratio to 0.26 by June 30, 2022, showcasing a notable increase in efficiency in utilizing fixed assets to generate sales. The ratio continued to improve reaching 0.31 by December 31, 2022.

However, there was a slight decline in the fixed asset turnover ratio to 0.27 by June 30, 2023, and further to 0.29 by September 30, 2023. It is noteworthy to mention that the data for the subsequent periods from December 31, 2023, onwards is unavailable (denoted as "—").

Overall, the trend in Viper Energy Ut's fixed asset turnover ratio shows both periods of improvement and slight decline. It is important for the company to consistently monitor and manage its fixed asset turnover ratio to ensure that its fixed assets are being efficiently utilized to generate sales and revenue.